Credit Conditions Survey - 2013

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The Credit Conditions Survey was conducted between January and March of 2014. The questions were fact-based and focused on financing sought by small enterprises (1 to 99 employees) during the 2013 calendar year.

A total of 2,545 small businesses completed the questionnaire, which included 25 questions. This is the second largest Canadian survey on small business financing. The margin of error is 1.9% for questions addressed to all respondents. R.A. Malatest & Associates administered the survey for Industry Canada.

The following tables present the key statistics from this survey.

Table 1: Request Rates, Approval Rates and Average Amounts Authorized, 2013
Type of Financing Request Rate Approval Rate* Average Amount Authorized
* A request that received either full approval or partial approval was considered "approved".
Debt Financing 30 85 $280,000
Leasing 11 95 -
Equity Financing 4 - -
Trade Credit 10 - -
Table 2: Debt Financing (Long Term versus Short Term), 2013
Type of Debt Request Rate Approval Rate* Average Interest Rate % Collateral Required Average Amount Authorized
* A request that received either full approval or partial approval was considered "approved".
** Non-residential mortgages and term loans
*** Business lines of credit and credit cards
Long Term** 14 84 5.0 74 $400,000
Short Term*** 23 84 5.9 56 $220,000
Overall 30 84 5.6 60 $280,000
Table 3: Debt Financing By Enterprise Characteristics, 2013
Enterprise Characteristics Request Rate Approval Rate* Average
Amount
Authorized
* A request that received either full approval or partial approval was considered "approved".
** A firm that developed or introduced a product, process, organizational or marketing innovation in the 2013 calendar year was considered an "innovator".
Number of Employees
1 to 4 24 81 $120,000
5 to 9 32 83 $180,000
10 to 19 35 86 $260,000
20 to 99 43 93 $680,000
Region
Atlantic 28 89 $960,000
Quebec 27 87 $350,000
Ontario 29 80 $140,000
Manitoba-Saskatchewan 28 90 $270,000
Alberta 36 85 $400,000
British Columbia & Territories 36 86 $350,000
Industry
Accommodation and Food 28 75 $170,000
Construction 40 88 $230,000
Manufacturing 37 89 $250,000
Agriculture and Fishing, Forestry, and Oil and Mining 42 93 $450,000
Professional Services 24 89 $240,000
Transportation/Warehousing 34 80 $350,000
Retail Trade 28 83 $190,000
Wholesale Trade 32 90 $330,000
Retail and Wholesale 31 83 $260,000
Age of Business
3 years old or younger 40 83 $160,000
4 to 10 years old 35 82 $150,000
More than 10 years old 29 86 $330,000
Exporting Activities
Exporter 36 90 $310,000
Non-Exporter 30 84 $270,000
Innovation
Product 42 82 $240,000
Process 38 80 $270,000
Organizational 46 83 $450,000
Marketing 38 81 $200,000
Innovator** 38 86 $270,000
Non-Innovator 21 83 $270,000
Gender of Majority Owner
Male 32 87 $350,000
Female 23 86 $60,000
Jointly Owned 31 77 $190,000
Education Level of Majority Owner
Less than high school 32 91 $140,000
High school diploma 31 79 $190,000
College/Cegep/Trade school diploma 31 86 $220,000
Bachelor Degree 30 85 $350,000
Masters Degree or above 26 91 $400,000
Experience Level of Majority Owner
5 years or less 37 77 $350,000
6 to 10 years 36 85 $150,000
More than 10 years 29 85 $300,000
Age of Majority Owner
Younger than 40 years old 36 87 $220,000
40 to 49 years old 33 80 $190,000
50 to 64 years old 29 89 $350,000
65 years old or older 24 78 $230,000
Table 4: Main Reason for Not Seeking Financing, 2013
Reason %
Financing not needed 86
Unaware of financing sources 3
Thought request would be turned down 3
Applying for financing too difficult 2
Cost of financing too high 2
Other reason 3
Table 5: Main Intended Use of Financing, 2013
Intended Use %
Fixed asset 40
Working/Operating capital 49
Research and development 2
Debt consolidations 5
Enter a new market 3
Other use 2
Table 6: Export Destinations, 2013
Destination %
Local municipality or region 75
Rest of province/territory 16
Rest of Canada 5
Rest of the world 4
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